Open / Close Advertisement

EVRAZ Reports 2013 Operational Results

01/17/2014 - EVRAZ plc released its operational results for the fourth quarter of 2013 and full year of 2013.

FY 2013 OPERATIONAL HIGHLIGHTS: 
  • Consolidated crude steel production and gross output of steel products increased by 1% and 2% respectively, despite suspensions in Europe and North America with Russian, Ukrainian and South African operations contributing to the overall growth
  • EVRAZ NTMK implemented the PCI project allowing for the sustainable reduction of operating costs
  • Production at EVRAZ ZSMK rail mill recommenced following the successful completion of the major modernization project and the Company obtained all necessary approvals for commercial production of head-hardened rails
  • EVRAZ suspended operations at EVRAZ Claymont and EVRAZ Palini e Bertoli as part of the group wide optimization plan
  • Production of saleable iron ore products decreased by 1% in 2013 as a result of the ongoing restructuring program within the iron ore business which resulted in the disposal of EVRAZ VGOK and certain mines of Evrazruda
  • The coking coal business of the Group increased the output of raw coking coal in 2013 by 22% (on a pro-forma basis) with both key assets Yuzhkuzbassugol and the Raspadskaya coal company contributing significantly to the growth
  • EVRAZ commissioned a new coking coal mine — Yerunakovskaya VIII — which will be a large scale and low cost operation
  • EVRAZ continued the integration of the Raspaskaya coal company following its acquisition in January 2013
  • Although underlying demand for most steel product groups in Russia and North America was strong, average selling prices for all key product groups continued to soften over the year in line with global benchmarks

Q4 2013 OPERATIONAL HIGHLIGHTS and RECENT DEVELOPMENTS: 
  • Consolidated crude steel production was broadly flat in Q4 2013 vs. Q3 2013
  • Output of gross steel products remained unchanged vs. Q3 2013 supported by export demand for Russian made semi-finished products and a strong order book for tubular products in North America while the output of construction products showed seasonal decline
  • Share of finished steel products decreased to 69% in Q4 2013 vs. 75% in Q3 2013 due to seasonal factors and redistribution of production at the Russian steel mills towards semi-finished products
  • Output of iron ore products decreased by 10% in Q4 2013 as a result of the disposal of EVRAZ VGOK in October 2013
  • Consolidated raw coking coal output grew 5% driven by increased mining volumes at Yuzhkuzbassugol, and despite two of the mines of the Raspadskaya coal company being closed for repositioning of longwalls
  • In October 2013, EVRAZ sold the Gramoteinskaya steam coal mine, which was adjudged to be a non-core operation for EVRAZ’s coking coal business 
  • In November 2013, EVRAZ was awarded with a compliance certificate for head-hardened rails with lengths of up to 100 meters, allowing the Company to launch commercial production. The first batch of 10 thousand tonnes of 25-meter head-hardened rails was shipped to the Russian Railways in December 2013
  • In December 2013, EVRAZ announced the completion of construction works and commencement of hot tests at the light-section rolling mill in Kostanay, Kazakhstan, with a nominal capacity of 450 thousand tonnes of construction products, which are currently in strong demand in the Central Asian markets
  • In December 2013, the Raspadskaya coal company launched a new longwall at its flagship Raspadskaya underground mine, being an important milestone in the programme of mining volume growth for 2014
  • In December 2013, EVRAZ announced the sale of a number of Evrazruda’s loss making iron ore assets and utilities companies located in the Republic of Khakassia and the Kemerovo region as part of its iron ore asset portfolio optimization program
  • Average selling prices for EVRAZ’s key steel product groups changed responding to global steel and local market demand, changes in product mix and seasonal factors
  • Prices for iron ore products slightly increased in line with global benchmarks
  • Average quarterly prices for Russian-produced coking coal concentrate are more resilient to price movements globally and remained broadly at the level of Q3 2013 
CONSOLIDATED STEEL PRODUCTION*                    
                     
Product, ‘000 tonnes 2012   Q1 2013 Q2 2013 Q3 2013 Q4 2013 2013   %, change  
                     
Coke (saleable) 1,417   356 398 342 283 1,380   -2.6%  
Pig iron 12,031   3,153 3,106 3,137 3,158 12,553   4.3%  
Pig iron (saleable) 261   46 45 131 119 341   30.4%  
Crude steel 15,933   4,069 4,089 3,962 3,989 16,109   1.1%  
Steel products, gross 15,700   4,022 4,093 3,933 3,924 15,972   1.7%  
Steel products, net of re-rolled volumes 14,195   3,601 3,695 3,649 3,728 14,673   3.4%  
   Semi-finished products 3,152   928 843 918 1,155 3,843   21.9%  
   Finished products 11,043   2,673 2,853 2,730 2,574 10,830   -1.9%  
   Construction products 5,208   1,238 1,335 1,363 1,250 5,186   -0.4%  
   Railway products 1,801   381 497 515 510 1,903   5.7%  
   Flat-rolled products 2,466   643 640 460 365 2,108   -14.5%  
   Tubular products 872   226 200 229 273 927   6.4%  
   Other steel products 696   186 181 163 175 706   1.3%  
                     
RUSSIA                    
Coke (saleable) 504   148 185 141 117 592   17.5%  
Pig iron 10,555   2,748 2,694 2,735 2,760 10,936   3.6%  
Pig iron (saleable) 184   44 39 110 110 303   64.2%  
Crude steel 11,676   2,948 3,003 2,967 2,986 11,904   2.0%  
Steel products, gross 10,820   2,726 2,797 2,753 2,780 11,056   2.2%  
Steel products, net of re-rolled volumes 10,556   2,640 2,744 2,661 2,754 10,799   2.3%  
Semi-finished products 4,091   1,173 1,106 1,024 1,214 4,517   10.4%  
Finished products 6,464   1,467 1,638 1,637 1,540 6,282   -2.8%  
   Construction products 4,282   993 1,067 1,109 1,016 4,185   -2.2%  
   Railway products 1,310   261 379 389 380 1,409   7.6%  
   Flat-rolled products 333   64 52 4 0 120   -64.1%  
   Other steel products 540   149 140 135 144 568   5.0%  
                     
UKRAINE                    
Coke (saleable) 913   208 213 201 166 788   -13.7%  
Pig iron 857   231 254 257 237 978   14.1%  
Pig iron (saleable) 77   2 5 21 9 38   -50.8%  
Crude steel 820   244 265 246 239 995   21.4%  
Steel products 702   211 214 207 223 854   21.6%  
Semi-finished products 245   83 78 87 111 359   47.1%  
Finished products 457   128 135 120 112 494   8.0%  
   Construction products 357   106 109 101 91 407   13.9%  
   Other steel products 101   22 26 19 21 87   -13.2%  
                     
NORTH AMERICA                    
Crude steel 2,411   562 561 558 499 2,180   -9.6%  
Steel products, net of re-rolled volumes 2,662   707 688 673 691 2,760   3.7%  
Construction products 331   85 104 81 78 348   5.1%  
Railway products 491   120 118 126 130 494   0.6%  
Flat-rolled products 968   276 267 237 210 990   2.3%  
Tubular products 872   226 200 229 273 927   6.4%  
                     
EUROPE                    
Crude steel 454   140 100 46 102 388   -14.6%  
Steel products, gross 1,055   254 259 174 114 801   -24.0%  
Steel products, net of re-rolled volumes 1,028   247 257 174 114 792   -22.9%  
Construction products 69   14 17 22 28 80   17.1%  
Flat-rolled products 919   228 234 147 83 693   -24.7%  
Other steel products 39   5 6 5 3 19   -51.2%  
                     
SOUTH AFRICA                    
Pig iron 619   174 158 145 161 639   3%  
Crude steel 573   175 159 144 164 642   12%  
Steel products 461   124 135 127 116 502   9%  
Semi-finished products 15   0 0 0 0 0   -100%  
Finished products 446   124 135 127 116 502   12%  
   Construction products 169   41 38 50 37 166   -2%  
   Flat-rolled products 242   74 87 72 72 305   25%  
   Other steel products 34   9 9 6 8 31   -7%  
                     
* Numbers can be different from the published earlier due to the minor alterations in calculations